Dubai, often referred to as the "Silicon Valley of the Middle East," has drawn some of the industry's best to its shores, and it's quite easy to understand why. For one thing, the emirate's location and time zone make it ideal for trading and collaborating with other innovation centers across the world. Also, the cheap tax environment, favorable business climate, and hassle-free business setup in Dubai are a major draw with investors looking to set up their IT company in Dubai. Not convinced? Here are some more reasons why you should consider setting up your IT company in Dubai.
Why you should set up your IT company in Dubai?
- Government's support – The Dubai government, is leading from the front in this aspect. The government has been involved in technology-driven programs to establish Dubai as a significant technological hub in the area. It is taking significant measures to make Dubai the East's new Silicon Valley by offering many subsidies and starting up pitching contests.
- Tech-savvy population: IT startups thrive in areas with rising demand for technology-based goods and services. Dubai's residents are more demanding and technologically savvy. It currently holds world-class international events such as the World Expo 2020 and other technological conferences.
- Rapidly growing e-commerce sector: More consumers in Dubai are getting comfortable utilizing online platforms and realize the benefits of utilizing online marketplaces, and the eCommerce industry is rapidly developing. Dubai is leveraging this fact to quickly establish itself as a hub for IT companies.
- Passion for innovative technology: Dubai is quickly becoming a significant playground for top IT startups bringing in cutting-edge technologies. From high-tech vehicle tech to healthcare solutions to hardcore tech such as AI, Augmented Reality, Virtual Reality. So on, Dubai is working to establish the world's most sophisticated technology-driven ecosystem!
- Increased funding activity for tech startups: In Dubai, the number of funded IT startups is steadily increasing. As a result, Dubai-based IT startups are raising more money through different transactions than ever before! Astute investors continue to pour money into Dubai's most promising startups.
What you need for IT company registration in Dubai?
A few factors must be addressed before you can start the process for IT company formation in Dubai. Among them are:
- Decide whether the firm will be established on the mainland of Dubai or in one of the city's free economic zones
- Choose the legal entity under which the firm will function (most of the time, a limited liability corporation is chosen)
- Begin the process of business setup in Dubai by reserving a Company name and deciding on the Activity of the company.
- Depending on where the firm will operate, the company registration procedure will be performed with the Trade Register in Dubai or the free zone administration.
- Since 2018, all Dubai firms have been obliged to register for VAT; hence, this is essential when establishing an IT firm.
- The license will be awarded by the Department of Economic Development ( Ministry of Economy) or the local free zone authorities.
Our Dubai company formation advisors can assist you with more information and guidance on IT business setup in Dubai. We can even provide inputs in determining whether you should go in for a free zone or mainland business setup in Dubai for your IT company.
What are the documents needed for IT company formation in Dubai?
To kickstart your IT company registration in Dubai, you must submit the following documents to Dubai's Department of Economic Development (DED):
- Passport documents of the individual requesting the license and his/her partners
- Proof of first approval fee paid
- A passport copy and emirates id of UAE national who will act as an agent of the company (if applicable)
- An NOC for expatriate partners from their sponsors (if applicable)
- Notarized partnership agreement or Local Agent Agreement
- Take leage agreement
- Issue License
Steps to set up your IT company in Dubai
As with all other business set up in Dubai, setting up your IT company too has certain key steps to be followed. They are
1. Reserving your company name
Your IT firm must adhere to all of the legal trade name criteria specified by the government. In any way, it should not be disrespectful, inflammatory, or derogatory to anybody. Also, be sure to use your complete name rather than an abbreviation or nicknames.
2. Finalizing your location
It is important to have a thorough awareness of the UAE's numerous location options. Choosing the correct location for your company's operations will help you save a lot of money and make your firm run more smoothly. Choose whether you want a mainland location or a location in one of the free zones.
3. Submitting the necessary paperwork
IT company formation in Dubai entails a slew of legal duties and paperwork submissions. A business setup consultant may assist in smoothing down the procedure and ensuring that all paperwork is authorized all at once. The documentation comprises reserving a trade name, obtaining a valid trading license, and so forth.
4. Applying for visas
Apply for your visa, as well as the visas of your partners and staff (if the jurisdiction permits). Following the verification of your entry permission, medical fitness test, and other requirements, you will receive an official visa stamping.
How Avyanco can help with IT company formation in Dubai?
Now that you've made the smart move to set up an IT company in Dubai, all that remains is for you to choose the perfect consultant to help with business setup in Dubai. Our experienced consultants can assist you and would be delighted to take on the task of establishing your IT firm in Dubai while maintaining your confidentiality.